What is the Engineering For Kids franchisee's obligation regarding the development of the Business based on?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that your acceptance of the obligation to develop the Business is based on your own independent investigation of the suitability of the site for the Business and that you are solely responsible for all due diligence and related costs to determine the suitability of a proposed site for the Franchised Business, including the costs related to issues that arise after the commencement of construction.
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- Learning Center Location Development and Preparation.
You are responsible for developing, at your own expense, your Learning Center Location at the Authorized Center Location.
Among other things, you agree to all of the following:
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, the franchisee's obligation to develop the business hinges on their own assessment of a site's suitability. Engineering For Kids may offer recommendations or approve a location, but this doesn't constitute a guarantee regarding the site's potential for success. The FDD emphasizes that the franchisee must conduct their own independent investigation to determine if the site aligns with their business needs. This includes covering all associated due diligence and construction costs.
Engineering For Kids's recommendations are based on criteria that have been effective at other locations, but the FDD makes it clear that these criteria might not accurately predict success for every site. Demographic and other factors can change, impacting a site's potential. The FDD states that these factors are beyond Engineering For Kids's control, and they are not liable if a recommended site fails to meet the franchisee's expectations.
Therefore, the responsibility for developing the Learning Center Location at the Authorized Center Location rests solely with the franchisee, at their own expense. This includes all aspects of development and preparation. This arrangement is typical in franchising, where franchisees usually bear the financial risk and responsibility for site selection and development, while franchisors offer guidance and brand standards.